Financial support to innovation: The role of European development financial institutions

Stefano Clò, Marco Frigerio and Daniela Vandone

Research Policy, 2022, vol. 51, issue 10

Abstract: We analyse the role of European development financial institutions (DFIs) in supporting innovation by empirically investigating the impact of their participation as investors in equity deals on target firms' patenting activity. We build a unique international data set of deals and firm-level data in the years 2007–2019. Econometric results highlight the positive contribution of DFIs in mobilizing finance to support innovation, and the magnitude of this effect is amplified when DFIs act in partnership with other investors. This represents novel evidence on the innovative-oriented mission driving their activity. These new findings point to the recent role of DFIs in sharing the management of EU financial instruments, implementing programmes to strengthen the longer-term support of finance for enterprises, and boosting innovation and growth.

Keywords: Development bank; Development financial institution; State investment bank; Equity deal; Financing innovation; Patents (search for similar items in EconPapers)
JEL-codes: G20 G21 L32 O16 O19 O38 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Working Paper: Financial Support to Innovation: the Role of European Development Financial Institutions (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:51:y:2022:i:10:s0048733322000890

DOI: 10.1016/j.respol.2022.104566

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